NanoVibronix Inc. (NASDAQ:NAOV) saw its stock tumble 15.9% in premarket trading on Tuesday after the company filed a prospectus for a potential resale of up to 1,347,935 shares of common stock by existing shareholders.
The filing covers 880,099 shares convertible from Series H Convertible Preferred Stock and 467,836 shares from exercisable warrants. The Series H preferred shares carry an initial conversion price of $10.10 per share, while the warrants have an exercise price of $22.50 per share.
NanoVibronix itself will not receive proceeds from the sale of these shares by current stockholders, though funds would accrue to the company if the warrants are exercised for cash, which would be allocated toward general corporate purposes.
The Series H shares, related warrants, and resulting conversion shares were originally issued under exemptions provided by Section 4(a)(2) of the Securities Act and/or Regulation D.
Selling shareholders may offload shares through public or private transactions at prevailing market prices or negotiated terms. The company will cover all registration costs, while any commissions or discounts from the resale will be borne by the selling stockholders.
On September 12, NanoVibronix closed at $6.49 per share on the Nasdaq Capital Market.
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